AIZAWA SECURITIES GROUP CO., LTD.
8708・Prime Market・Securities & Commodity Futures
Business
Aizawa Securities Group Co., Ltd. is a face-to-face full-service securities group with a history spanning over 100 years since its founding in 1918. It comprises three segments centered on its core Securities Business (Aizawa Securities Co., Ltd.): the Investment Business (Aizawa Investments Co., Ltd.), which handles proprietary investments, and the Asset Management Business (Aizawa Asset Management Co., Ltd.), which engages in Alternative Asset Management (Hedge Funds, etc.). Its primary customers are individual wealth-building and quasi-affluent segments, and it is expanding its customer base through its nationwide network of face-to-face branches as well as its Platform Business, which collaborates with IFA firms and regional financial institutions. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
In the Securities Business, the main revenue sources are equity brokerage commissions (flow revenue) and trust fees from Investment Trusts & Fund Wrap products (stock revenue). Through Goal-Based Approach (GBA) sales activities, the company is building up its stock-type product assets under custody, driving a shift toward a stable earnings structure less susceptible to market conditions. In the Investment Business, the company invests its own account in listed and unlisted securities as well as real estate, earning gains on sales, dividends, and rental income. For FY2026 (ending March 2026), commissions received were ¥16,713 million (up 17.8% year on year), of which other commissions received, including trust fees, were ¥6,149 million (up 20.2% year on year).
Company Strengths
Founded in 1918 with a business history of over 100 years, listed on the Prime Market of the Tokyo Stock Exchange. The company operates face-to-face branches nationwide, and total assets under custody reached ¥2,385.5 billion as of the end of March 2026, up 21.3% from the end of the previous fiscal year. The long-standing relationships of trust with customers and the branch network constitute a competitive advantage that is difficult to replicate in a short period of time.
Through the promotion of GBA-based sales activities, assets under custody in stock-type products (Investment Trusts & Fund Wrap) expanded to ¥5,639 million as of the end of March 2026 (up ¥140.6 billion, or 33.2%, from the end of the previous fiscal year). Trust fees and other commissions received continued to increase, reaching ¥6,149 million (up 20.2% year on year), reflecting ongoing progress toward an earnings structure less susceptible to market fluctuations.
The company operates a Platform Business in partnership with IFA firms and deposit-taking financial institutions for which financial product sales are not their core business. As of the end of March 2026, assets under custody in this channel reached ¥365.7 billion (up ¥92.6 billion from the end of the previous fiscal year), of which stock-type product assets under custody amounted to ¥137.7 billion (up ¥49.8 billion), functioning as an acquisition channel for asset-building customer segments.
ENVALITH's Perspective
Performance Trend
After bottoming out from losses in FY2023 (ended March 2023), the company achieved two consecutive years of revenue and profit growth in FY2024 (ended March 2024) and FY2025 (ended March 2025), but in FY2026 (ending March 2026), operating profit plunged to ¥26 million (down 98.6% year on year). In terms of the external environment, both domestic and overseas equity markets were generally firm (the Nikkei average reached a new all-time high), and Equity Brokerage Trading commissions (¥7,212 million, up 25.0% year on year) and other fee income including trust fees (¥6,149 million, up 20.2% year on year) both expanded. However, in the Investment Business, distribution income recorded in the previous period declined, and the company posted an operating loss of ¥722 million due to fund valuation losses and impairment losses. In addition, the increase in selling, general and administrative expenses (¥19,879 million, up 9.6% year on year) accompanying the expansion of the Platform Business absorbed the growth in net operating revenue. Profit attributable to owners of parent was secured at ¥2,752 million, supported by gains on sale of investment securities (¥3,865 million). Comprehensive income increased substantially to ¥5,761 million, driven by an increase in valuation difference on available-for-sale securities (¥3,208 million).
Growth Strategy
3-year medium-term management plan aiming for deepening of GBA-style sales approach and stable achievement of ROE of 8% or higher
GBA-style sales, launched at pilot branches in April 2025, will be rolled out to all branches from April 2026. Through hands-on support for realizing customers' and their families' life plans, the company aims to build up stock product balances and shift toward a stable earnings structure less susceptible to market conditions. As of the end of March 2026, stock product assets under custody reached ¥563.9 billion (up ¥140.6 billion from the end of the previous fiscal year), indicating steady progress.
The company is promoting the acquisition of asset-building customers through collaboration with IFA firms and deposit-taking financial institutions. As of the end of March 2026, assets under custody in the Platform Business expanded to ¥365.7 billion (up ¥92.6 billion from the end of the previous fiscal year), of which stock products accounted for ¥137.7 billion (up ¥49.8 billion). While this entails increased selling, general and administrative expenses, it is positioned as an upfront investment for expanding the customer base over the medium to long term.
Aizawa Investments is promoting the optimization of its medium- to long-term investment portfolio across Listed Securities Investment, Venture Fund Investment, and real estate. In FY2026 (ending March 2026), the company recorded an operating loss of ¥722 million due to fund valuation losses, among other factors, but recorded a gain on sale of investment securities of ¥3,865 million as extraordinary income, which supported consolidated net income. The policy places the highest priority on maximizing medium-term investment performance.
Aizawa Asset Management is withdrawing from the hedge fund business and concentrating management resources on Alternative Asset Management (Hedge Funds, etc.), centered on Private Equity Secondary Investment. In FY2026 (ending March 2026), the company recorded an operating loss of ¥364 million due to increased expenses associated with the hedge fund withdrawal. A key challenge going forward is realizing the fixed-cost reduction effects once the withdrawal is complete.
Following the shelf registration filed in October 2024, the company has established a corporate bond issuance framework with a ceiling of ¥30.0 billion over a two-year period. As of the end of FY2026 (ending March 2026), the balance of short-term corporate bonds stood at ¥12,085 million (up ¥6,085 million from the previous fiscal year). By diversifying funding costs and establishing an agile fundraising framework, the company is strengthening its financial foundation to support growth investments in the Investment Business and Securities Business.
Last updated: July 19, 2026